KIOCL signs MoU with NMDC and SAIL

New Delhi, Mar 10 (UNI) Minister of State for Steel Dr Akhilesh Das today informed the Rajya Sabha that Kudremukh Iron Ore Company Ltd (IOCL) has signed a Long Term Agreement with NMDC for meeting major portion of its requirement of iron ore.

KIOCL has also signed a Memorandum of Understanding with Steel Authority of India Ltd. (SAIL) for setting up a joint venture to mine iron ore at Kalta, Taldih and Barsua mines in Orissa.

KIOCL has also opened a liaison office in Bhubaneshwar, Orissa headed by a Deputy Manager, he added.

On decline in dividend by SAIL, Dr Das said that based on the financial performance during April-December 2005, the company declared interim dividend at the rate of 12.5 per cent of paid-up equity share capital. However, in the corresponding period in 2004, the company declared interim dividend of 15 per cent. Hence, decline in dividend was only 2.5 per cent of the paid-up equity capital.

During April-December 2005, SAIL achieved net profit of Rs 2935 crore against Rs 4139 crore during corresponding period last year (CPLY). The production in profits is primarly due to lower Net Sales Price Realisation and input cost escalation mainly, coking coal.

During April-December 2005, Saleable Steel production increased by 8 per cent at 8591000 tonnes compared to 7956000 tonnes CPLY.